Net sales was $17.4 billion, almost identical to a year ago.
Beauty segment organic sales rose 8%, while Grooming segment organic sales slipped 3%. Health Care segment organic sales rose 5%, and Fabric and Home Care segment organic sales increased 6% for the quarter. Baby, Feminine and Family Care segment organic sales inched 3% up.
LOOKING FORWARD
In line with the quarterly performance, P&G spiked the higher end of its annual guidance for organic sales growth by 1%.
Organic sales growth is now estimated at 2-4% for fiscal 2019. The company now touts fiscal all-in sales to fall or rise 1%. “The net effect of acquisitions and divestitures should have a modest positive impact on all-in sales growth,” read the company statement.
Core earnings is expected to grow 3-8% per share for the year — taking an estimated $1.4 billion headwind from forex and higher commodity-transportation costs. GAAP diluted net EPS is expected to rise 17-24%.
P&G expects to pay over $7 billion in dividends and repurchase up to $5 billion of common shares.
P&G has been taking steps to revamp its product offerings while attempting to reduce costs. The company’s margins have been under pressure lately, and the increased investment costs are hurting margins. Negative impacts from currency fluctuations remain a threat to margins. As the giant goes deeper into 2019, let’s see how P&G will streamline its efforts to drive more value to its investors.